Apple Shares Drop Down

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Apple Shares Drop Down

In a major blow to Apple, the company’s shares experienced a sharp decline of almost 3% on Monday morning, reaching a four-month low. This drop came as a direct response to the European Union’s groundbreaking decision to impose a hefty fine of nearly $2 billion on the tech giant for antitrust violations. It marked Apple’s worst day on Wall Street in over two months and continued the downward trend of its shares.

At the start of the trading day, Apple’s stock fell below $175 per share, a level not seen since early November. This single-day decline was the most significant since January 2. The decline in share price occurred shortly after the European Commission, the executive body of the European Union, levied the record antitrust fine on Apple. The commission’s ruling stated that Apple had imposed restrictions on rival app developers, thereby hindering competition and preventing them from informing iPhone users about alternative, cheaper subscription services.

Apple Shares Drop Down
Photo of apple symbol and arrow going down

The anticompetitive behavior identified by the commission had persisted for nearly a decade, resulting in users paying higher prices for streaming services due to Apple’s 30% commission fee on in-app transactions. Apple has expressed its disagreement with the decision, arguing that the commission failed to provide credible evidence of consumer harm.

This latest development adds to Apple’s recent struggles in the market. The company’s stock has been on a downward trajectory, experiencing a decline of nearly 6% since the beginning of the year. On January 2, Apple faced its worst day on Wall Street in 2024 when its shares fell by almost 4% following a pessimistic rating from Barclays analysts who expressed concerns about weak iPhone sales. Last week, Apple’s shares reached their lowest level in almost four months amid doubts surrounding the company’s initiatives in the field of artificial intelligence. Investors have also been diverting their attention to Apple’s competitors, such as Microsoft.

Adding to the challenges, Apple made headlines last week with the announcement of its decision to abandon its ambitious project to develop an electric car, which CEO Tim Cook had once referred to as the “mother of all AI projects.” These recent setbacks have raised questions about Apple’s future prospects and its ability to maintain its position in the highly competitive tech industry.

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